Reducing VePassport Validity to 1 Week

VeBetterDAO
18

Dear VeFam and active DAO members,
I am here once again to present a revised version of my proposal, shaped by the valuable suggestions and ideas shared with me—although I would have appreciated a more active discussion on Discourse.
With this proposal, I aim to demonstrate my commitment to the DAO by setting aside my personal ideals. I am a strong advocate for quadratic rewards, as I firmly believe in their fairness. However, in this proposal, I am calling for the permanent re-establishment of linear rewards. The community’s trust in the DAO should not be jeopardized due to short-sighted decisions and insufficient testing of quadratic rewards during the “testnet” phase.
Therefore, today, I am putting forward a new version of the proposal, setting aside my own beliefs—though not without some regret.

Proposal Title:
Implementation of a Flexible Algorithm for VePassport to Manage Scores Based on Dapp Risk and Permanent Restoration of Linear Rewards

Proposer:
Roberto Califano

Date:
November 8, 2024

Problem to be Solved:
The current VePassport system, although already operational in some of its functions, uses a fixed scoring system and shows vulnerabilities in its dynamic response to Sybil attack risks. The previously implemented Quadratic Rewards (QR) did not provide the necessary stability, partly due to a lack of extended testing in a “testnet” environment. The community has expressed a need to stabilize rewards by making them permanently linear, with the option to reinstate Quadratic Rewards only through a DAO vote and only once VePassport is fully functional in all its features.

Objective of the Proposal:

  1. Optimization of VePassport Scoring: Develop a flexible algorithm that adjusts VePassport scores based on dapp security, penalizes interactions with vulnerable dapps, and adds a scoring criterion based on wallet age and VET balance.
  2. Permanent Restoration of Linear Rewards: Permanently reinstate linear rewards to stabilize the system and promote transparent, consistent participation within the community while maintaining quadratic voting. VePassport will continue to operate during this period, allowing improvements to be monitored and data to be collected for a potential future implementation of Quadratic Rewards.
  3. Verification Procedure for False Positives: Implement a verification procedure for users mistakenly flagged as bots or blacklisted, allowing them to prove their identity and maintain their ecosystem participation.

Description of the Proposed Solution:
The proposal includes the implementation of the following improvements over the current system:

  1. Adaptive Scoring Algorithm: A flexible system that adjusts scores based on dapp security. High-risk dapps will yield fewer points, while wallets will be evaluated based on wallet age and VET balance. If the VET balance falls below a certain threshold, the wallet’s score will be automatically reduced.

    An example of how this algorithm might function is as follows:

    # Initialize variables
score = 0
VePassport = "Not Activated"

# Number of actions performed
number_of_actions = ...  # Replace '...' with the actual number of actions

# Check if at least 3 actions have been performed
if number_of_actions >= 3:
    score += number_of_actions * 50  # Each action gives 50 points

    # Age of the wallet in months
    wallet_age_months = ...  # Replace '...' with the actual wallet age

    # Points based on the wallet's age
    if wallet_age_months >= 3:
        score += 150  # Wallet is older than 3 months
    else:
        score -= 150  # Wallet is younger than 3 months

    # VET balance in the wallet
    vet_balance = ...  # Replace '...' with the actual VET balance

    # Scoring based on VET balance
    if vet_balance >= 15000:
        score += 15
    elif vet_balance >= 10000:
        score += 10
    elif vet_balance == 0:
        score += 0
    # Add additional thresholds as needed

    # Voting method
    voting_method = ...  # Possible values: "Portal", "VeDelegate", "Script"

    if voting_method in ["Portal", "VeDelegate"]:
        score += 350  # Positive points for voting via Portal or VeDelegate
    elif voting_method == "Script":
        score -= 175  # Negative points for voting via script

    # Claiming method
    claiming_method = ...  # Possible values: "Portal", "VeDelegate", "Script"

    if claiming_method in ["Portal", "VeDelegate"]:
        score += 350  # Positive points for claiming via Portal or VeDelegate
    elif claiming_method == "Script":
        score -= 175  # Negative points for claiming via script

    # Login method
    login_method = ...  # Possible values: "Portal_Captcha", "VeDelegate_Captcha", "Script"

    if login_method in ["Portal_Captcha", "VeDelegate_Captcha"]:
        score += 150  # Positive points for login with captcha
    elif login_method == "Script":
        score -= 175  # Negative points for login via script

    # Check if the score threshold is reached
    if score >= 1000:
        VePassport = "Activated"
    else:
        VePassport = "Not Activated"
else:
    VePassport = "Not Activated"

    It is important to note that this example should be refined through active discussions on Discourse by the entire community.

  2. Permanent Linear Rewards with Quadratic Voting: Linear rewards will be reinstated permanently, while voting will remain quadratic. In the future, transitioning to Quadratic Rewards can only be decided by a DAO vote once VePassport is fully functional and thoroughly tested in all its features. During the period of linear rewards, VePassport will continue to monitor and collect data to assess improvements.

  3. Whitelisting, Blacklisting, and Bot Reporting Management: To improve transparency and user trust in the DAO, each dapp on VeBetterDAO can connect to the platform and publicly upload wallets added to various lists (whitelist or blacklist). Each flagged address must be accompanied by a clear justification specifying the reason for inclusion (whether in the whitelist or blacklist). This list of addresses will be public and accessible to all users within VeBetterDAO, allowing each member to monitor inclusion and exclusion criteria and understand the reasons behind each decision. VePassport will directly access this public list to define the score and status of each wallet, ensuring that evaluations are transparent and up-to-date, reflecting the latest information on wallet activities.

  4. Verification Procedure for False Positives: In case of error, if a wallet is mistakenly flagged as a bot or blacklisted, the user must be able to access the DAO to prove their identity. This process could include linking a social profile and completing a questionnaire within the VeBetterDAO platform, allowing the user to “earn” their identity in the system.

Technical Implementation:

  1. Development of the Adaptive Algorithm: Expanding the scoring system to include criteria for wallet age and VET balance.

  2. Reinstatement of Linear Rewards: Replacing Quadratic Rewards with Linear Rewards, with a return to QR only possible through a DAO vote and only once VePassport is complete and stable.

  3. Temporary Role of the Development Team: The development team will have the temporary authority to modify the VePassport smart contract without requiring DAO votes until June 30, 2025. This will allow rapid intervention on any issues encountered.

Necessary Resources:

  • Time: 2-3 months for development, testing, and implementation.
  • Community: The community will be called upon to actively participate in flagging suspicious actions during testing and to propose ideas to improve the algorithm in the Discourse section “How to solve Sybil problem that is affecting VeBetterDAO?”
  • VeBetterDAO Development Team: The team will be responsible for developing the updated algorithm and selecting the best proposals from the community to strengthen the system.

Expected Impact:
The introduction of an adaptive scoring system and a verification process for false positives will provide greater fairness and security for the community. With permanent linear rewards, VePassport will be able to ensure a stable and responsible environment for users, encouraging active and sustainable participation.

Conclusion:
This proposal is an essential update to optimize VePassport management, enhancing the equity and security of the VeChain ecosystem. I invite the entire community to actively support this initiative for a more resilient and reliable system.

Best Regards Roberto

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